KWSP’s payout rates for 3 accounts remain unchanged for now after launch of flexible accounts.


With the introduction of Flexi-Accounts by KWSP, the payout rates of the three accounts remain unchanged for the time being.

According to the Chief Executive Officer of the Employees Provident Fund Board (KWSP), the dividend payout rates for the 3 CPF accounts will remain unchanged, although there may be some changes in the future.

Many people are worried that the introduction of KWSP’s third account (Flexi-Account) will lead to a reduction in the dividend payout, but KWSP’s Chief Executive Officer has said that there will be no change for the time being. The third account accounts for a relatively small portion of the portfolio, so the impact on the portfolio is not significant and should not affect the overall dividend payout ratio.

KWSP announced last year’s CPF dividend in March this year, announcing that the conventional account would receive 5.50% and the Islamic account would receive 5.40%.

The Flexi Account will be officially launched on May 11, 2024 and members can apply to transfer their deposits from the second account to the third account (Flexi Account) from May 12 to August 31, 2024 via the KWSP i-AKaun APP or KWSP branch counters. If the member does not apply for the transfer, the deposit will remain in the second account.

There are several options for members to transfer their deposits.

1. Deposit of RM3,000 or above in the Second Account

Member can choose to transfer ten percent (10/30) of the deposit in the Second Account to the Third Account, five percent (5/30) of the deposit in the Second Account to the First Account, and fifteen percent (15/30) of the deposit in the Second Account will remain in the Second Account.

2. Second Account Deposit below RM3,000

If a member’s second account deposit does not exceed RM1,000, then all deposits can be transferred to the third account. If a member’s second account deposit is between RM1,000 and RM3,000, the member can transfer RM1,000 to the third account and keep the rest of the deposit in the second account.

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